Name_______________________________
ISyE 4803A Supply Chain Economics
Exam 2 – Spring 2009
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1.
(
15 pts
) Find all Nash equilibria (pure and mixed action) for the game.
Assume
player 1 is the row player and player 2 the column player.
Also, from among the
NE you find, state which are Pareto efficient.
A1
A2
A1
3,3
-3,2
A2
2,-6
-2,-2

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2.
(
21 pts
) For the network below, each flight leg has a capacity of 100 seats.
Write
the dual formulation to compute the shadow prices for the data given in the table.
Origin
Destination
Class
Price
Demand
A
C
1
700
20
A
D
1
300
33
A
E
1
500
19
A
E
2
300
40
B
D
1
600
15
B
D
2
200
35
B
E
1
500
22
C
D
1
400
20
C
D
2
180
43
C
E
1
300
29
C
E
2
200
50

3.
(
12 pts
) If the solution to the linear program in problem 2 gave shadow prices of
$160 for each leg, what fare classes would be closed?

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